TOKYO (Reuters) - Japanese fund managers raised their overall exposure to stocks in August, particularly in Japanese equities which performed strongly, a Reuters poll showed.
Respondents on average allocated 40.6 percent of their model portfolios to stocks in August, compared with 38.7 percent in July.
They raised their Japanese stock exposure to 63.1 percent in August from 43.7 percent in July.
Japan's Nikkei .N225 climbed to its highest since late May this month, lifted by a slight ebb in global trade war worries and the yen's depreciation against the dollar.
“While the ongoing U.S.-China trade friction and weakness in the Turkish lira remain a drag for equities, the market could rise further on strong corporate earnings as the global economy is doing well,” said Yuichi Kodama, chief economist at Meiji Yasuda Life Insurance.
The respondents reduced their North American stock exposure to 25.6 percent in August from 28.7 percent in July and euro-zone stock holdings to 4.8 percent from 13.2 percent.
European stocks were sold off sharply earlier in August when tensions mounted between the United States and Turkey.
The respondents shaved their overall exposure to bonds to 54.3 percent in August from 55.1 percent in July.
Reporting by the Tokyo markets team; Editing by Subhranshu Sahu